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Adba And Uk Battle Over Biogas Tariffs

Author: Harvest Power

ENGLAND–The UK will institute a new system of tariffs for biogas and renewable heat. The program, which is modeled after a successful Canadian initiative, will index the tariffs with inflation to protect investors and–hopefully–boost earnings in the biofuel sector.

However, critics complain that this deal leaves anaerobic digestion plants in the dust.

“The Anaerobic Digestion and Biogas Association (ADBA) expressed bewilderment at DECC’s decision to reduce the level of support for anaerobic digestion from the figure of 11p/kwh published in the summer of 2009 consultation document to 9p/kwh (€0.10) (for plants above 500kW), which is less than the current trading value for anaerobic digestion (AD) under the Renewable Obligation Certificate (ROC) scheme.”
Though the ADBA and other industry heads lobbied for change, the feed in tariff (FIT) level for small scale anaerobic digestion plants will stay unchanged–or stagnant–at 11.5 p/kwh.

In the blog Let’s Recycle, the ADBA noted that financial viability is the greatest obstacle to a healthy anaerobic digestion industry in the UK. The organization was lobbying intensely for for both the Feed-in Tariff (FiT) and the Renewable Heat Incentive (RHI) to be set at what they felt were appropriate levels.

Lord Redesdale, Executive Chairman of ADBA

ADBA called for the tariffs, which will go into effect by April 2011, to be set at 168p per therm- approximately the energy equivalent of burning 100 cubic feet of natural gas.

ADBA Executive Chairman Lord Redesdale said: “Whether this becomes an industry or remains as just a few plants dotted around the country really depends on the regulation and subsidy structure to make it financially viable.

The big one to change it will be the RHI. Nobody else will be looking at that subsidy, which is great and it will massively affect the industry.”
The blog Biofuels International remarks, “At this level of support there is no incentive for AD operators to move from the current ROC scheme to the new FIT, which was supposed to support smaller scale plants (less than 5MW) looking for a simpler alternative to ROCs.”

Article Source: http://www.articlesbase.com/environment-articles/adba-and-uk-battle-over-biogas-tariffs-1902186.html

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